I am following up on the article published by InvestmentNews I sent on the Fiduciary rule being delayed 180 days.
An executive order was drafted by the White House and circulated that included instructions to delay the applicability date under the assumption Trump would sign it the following day (Friday).
What actually happened was a memorandum (not an executive order) was issued instructing the DOL to do a thorough examination and economic and legal analysis of the Fiduciary Rule. It (did not) include instructions to delay the 4/10/17 applicability date as that part was removed.
Please click here to read the memorandum.
It is not believed this analysis can realistically be completed in the next 60 days before 4/10/17.
The DOL issued a statement that they “will now consider legal options to delay the applicability of the date as we comply with the Presidents memorandum.”
So long story short this is a pretty good strategy (in my opinion) to get the rule delayed and then modified or rescinded. If he would have issued the executive order to delay it, he would have had an uphill legal battle as you technically cannot do so once a law is already in effect which the Fiduciary rule is as the effective date was 4/10/16 and the applicability date is 4/10/17.
I think we will hear from the DOL next week or the following on how they are going to delay the applicability date in order to do the analysis the President ordered them to do.
We will keep you posted.
Jason L. Smith